The US entertainment and games software industry includes about 220
companies with combined annual revenue of about $10 billion. Major
companies include Activision Blizzard, Electronic Arts, Microsoft Game
Studios, Take-Two Interactive, and THQ.

Globally, consumers spend about $45 billion annually on video game
software. Outside of the US, Japan is the largest producer of video
games and is home to such companies as Capcom, Konami, Nintendo, Sony,
and Square Enix. Other major companies in this industry include NCsoft
(South Korea), Shanda Games (China), and Ubisoft (France).

Manufacturers of video game consoles and computers used for gaming are
covered in the Electronic Toys & Games Manufacturing and Computer
Manufacturing profiles.

Competitive Landscape:

Demand is driven primarily by personal income and gamer demographics.
The profitability of individual companies depends on an understanding of
consumer needs, timely product development, and effective marketing.
Large companies have economies of scale in manufacturing, marketing,
distribution, and selling. Small companies can compete successfully by
developing creative products.

Computer and video games compete as a leisure-time activity with TV,
movies, music, the Internet, and other forms of electronic and
non-electronic entertainment.

Products, Operations & Technology:

Major entertainment and games software product segments include
applications for gaming consoles (about 75 percent of industry
revenues), handheld devices (10 percent), and personal computers (10
percent). Console software is made for dedicated gaming devices that
work with TVs; major platforms include Microsoft's Xbox, Nintendo's Wii,
and Sony's Playstation.